Former Botswana President, Mokgweetsi Masisi, has urged African countries to stop exporting raw materials and importing expensive finished products, and instead build capacity to process and refine their assets.
Masisi spoke in Lagos on Monday at the 13th Memorial Lecture of former Ondo State Governor, Dr Olusegun Agagu.
Delivering the keynote address titled “Africa’s Resources, Africa’s Prosperity: Capturing More of the Value We Create,” he said Africa holds massive natural wealth, including about 30 per cent of the world’s mineral reserves, significant quantities of critical minerals for green energy transition, 40 per cent of global gold and up to 90 per cent of chromium and platinum.
He said African nations must shift from merely exporting raw materials and natural assets to building domestic capacity to process, refine and market them to ensure prosperity remains within the continent.
Drawing from Botswana’s experience in managing its diamond wealth, Masisi identified the non-compete clause as a major barrier to resource prosperity.
He said the archaic clause stifled Botswana’s economic potential and locked the country out of the global diamond value chain.
According to him, the agreement legally barred Botswana from independently marketing, processing or expanding its footprint in the international diamond trade, despite owning one of the world’s most lucrative mines.
Because of the restriction, Botswana was limited to capturing just 15 per cent of the total value of its mined diamonds, while cutting, polishing and trading – the high-value segments – were monopolised.
Masisi said the clause traditionally prevents African nations from capturing more than a small fraction of the potential total value of their own natural assets.
He urged African nations to move away from archaic agreements rooted in imperialistic, neo-colonial frameworks and embrace robust resource negotiations focused on local value addition, processing and manufacturing.
He called on governments across the continent to audit resource contracts, reject clauses that protect foreign monopolies, and build intellectual and industrial capacity to retain wealth
